The Rosa model of Mohave Corp. is currently manufactured as a very plain umbrella with no decoration. The company is considering changing this product to a much more decorative model by adding a sik-screened design and embellishments. A summary of the expected costs and revenues for Mohave's two options follows Rosa Librella 19. units 1 17. Decorated brella 19,000 units 128.00 Estimated demand Estimated sales price Estimated sanufacturing cost per unit Direct suterials Diret Labor Variable manufacturing overhead Fivefing overhead unit acturing out Anditional development cont $11.5 2.5 1.50 4. 3 12.50 1 11.1 3.00 3. 4. 5:25 113, Required: 1. Determine the increase or decrease in profit of Monave cells the Rosa Umbrella with the additional decorations 2 Should Mohave add decorations to the Rosa umbrella? 3. Suppose that the higher price of the decorated umbrela is expected to reduce estimated demand for this product to 17000 units. Determine the increase or decrease in profit if Mohave sells the Rosa Umbrella with the additional decorations 3-b. Should Mohave add decorations to the Rosa umbrello? Complete this question by entering your answers in the tabs below. Red Res 2 RA R9 38 Determine the increase or decrease in profit Mohave the Rosa Umbrella with the additional decorations. Req 1 Req 2 Req Req 3B Determine the increase or decrease in profit if Mohave sells the Rosa Umbrella with the additional decorations. ces Rosa Umbrella Decorated Umbrella Incremental Sales Revenue Variable Costs Contribution Margin Additional Development Costs Differential Profit (Loss) Req 2 > Complete this question by entering your answers in the tabs below. Reg 1 Reg 2 Req 3A Req 3B Suppose that the higher price of the decorated umbrella is expected to reduce estimated demand for this product to 17.000 units. Determine the increase or decrease in profit if Mohave sells the Rosa Umbrella with the additional decorations. Rosa Umbrella Decorated Umbrella Incremental Sales Revenue Vanable costs Contribution Margin Additional Development Costs Differenbal Profit (LOS) Reg 2 Req 33 > The Rosa model of Mohave Corp. is currently manufactured as a very plain umbrella with no decoration. The company is considering changing this product to a much more decorative model by adding a silk screened design and embellishments. A summary of the expected costs and revenues for Mohave's two options follows: Rosa Umbrella 19,000 units $ 17.00 Decorated bella 19,000 units $28.00 Estimated demand Estimated sales price Estimated manufacturing cost per unit Direct materials Direct labor Variable manufacturing overhead Fixed sanufacturing overhead Unit manufacturing cost Additional development cost $ 11.50 2.50 1.50 4.00 $10.50 $ 13.50 5.00 3.50 4. 526.00 $13,000 Required: 1. Determine the increase or decrease in profit if Mohave sells the Rosa Umbrella with the additional decorations 2. Should 3-8. Suppose that the higher price of the decorated umbrella is expected to feduce estimated demand for this product to 17,000 units. Determine the increase or decrease in profit if Mohave sells the Rosa Umbrella with the additional decorations 3-b. Should Mohave add decorations to the Rosa umbrello? Complete this question by entering your answers in the tabs below
